CDC - Changes in New Zealand’s Official Development Assistance Programme


(Information Note for Cambodia Consultative Group Meeting, June 2002) Changes in New Zealand’s Official Development Assistance Programme

Introduction Following a review in 2001, the New Zealand Government has decided to implement major reforms with the objective of improving the delivery and impact of New Zealand’s ODA programme. This paper sets out the changes taking place in the management and focus of the New Zealand ODA programme. Institutional Developments From 1 July 2002, the aid programme will be managed by a new Government Agency —the New Zealand Agency for International Development (NZAID), or Nga Hoe Tuputupu mai Tawhiti (Maori for “the paddles of growth from afar”). The Agency will be a semi-autonomous body within the Ministry of Foreign Affairs and Trade, in Wellington. The new Agency will report directly to Ministers on policy and operational matters. The Agency will also recruit and build a team of specialist development staff. Policy Directions The central focus of the Agency’s work is to be poverty elimination, through sustainable and equitable development, for the purpose of achieving a safe and just world free of poverty. Poverty is defined as Absolute Poverty (failure to meet basic needs); Poverty of Opportunity (eg: access to land, education); and Vulnerability to Poverty (eg: natural disasters). A new Policy Framework will be published on 1 July 2002 and will be distributed to our development partners. New Zealand is also committed to working with the international community to achieve the goal of committing 0.7% of its Gross National Income (GNI) to development assistance activities. NZAID’s guiding principles will centre around being a trusted partner in development. Key elements of the new approach will be: • a greater emphasis on basic education • a stronger focus on good governance to ensure participation by all people in economic, social, cultural and political life and decision-making processes which affect their lives • mainstreaming human rights alongside gender and the environment, and • use of the Millennium Development Goals to monitor outcomes and impacts • a strong emphasis on partnership between governments, peoples and organisations based on openness, respect and mutual accountability; this will include strengthened efforts to co-ordinate with other donors to ensure developing nations own, control and achieve their development goals Geographical Focus The core focus will continue to be the Pacific. This recognises New Zealand’s proximity to remote, resource-poor and vulnerable islands. NZAID will also continue to work in parts of Asia (the current second major geographical focus). The Government has also asked the Agency to review the geographic dispersal of NZODA with a view to a more consolidated aid programme — the assessment frameworks (see below) are designed to make recommendations on this question. Regional and Country Strategies Revised regional and country strategies are to be drawn up for all programmes to set out the sectors New Zealand can best assist in. Attention will be paid to sectors where New Zealand has a comparative advantage or a special contribution to make. Funding Mechanisms and Assessment Frameworks All programmes will go through Assessment Frameworks to determine the depth of our engagement bilaterally, regionally, and multilaterally. It is expected that NZODA will continue to be disbursed through means such as: • bilateral programmes with country partners • core contributions and grant funds to multilateral and regional agencies and International Financial Institutions • regional, sectoral and thematic programmes • core contributions and grant funds to non-governmental and civil society organisations overseas and in New Zealand • emergency and disaster relief funds The Assessment frameworks will determine the split between the various funding windows outlined above. They involve an assessment of all ODA contributions including our assistance to ASEAN countries. Coordination, Harmonisation and Partnership Partnership is a key principle of the new Agency. NZAID is committed to keeping development partners up to date on changes and to seek their views on how New Zealand can best meet the countries/region’s development aspirations. NZAID is also committed to greater co-ordination and harmonisation of its efforts with partner countries, companion aid agencies and regional and multilateral development organisations. The objective is through more effective planning and coordination, to achieve targeted outputs and verifiable outcomes. (Ministry of Foreign Affairs and Trade, Wellington, June 2002)